Four Stocks Yielding More Than 4%
By Zacks.com Oct 09, 2012 12:50 pm
These companies -- including Lorillard and Genesis Energy -- have a yield greater than 4%, a history of raising their dividends, and are expected to grow earnings in both 2012 and 2013.
Genesis Energy, L.P. (NYSE:GEL)
Genesis Energy is a master limited partnership ("MLP") focused on the midstream segment of the oil and gas industry in the Gulf Coast region of the US. Because it generates steady fee-based income, its results do not fluctuate heavily with volatile oil and gas prices.
It currently pays a distribution that yields a juicy 5.4%. After cutting its distribution early last decade, the partnership has been consistently raising it over the last several years:
Omega Healthcare Investors (NYSE:OHI)
Omega Healthcare is a Real Estate Investment Trust ("REIT") that invests in long-term care facilities, primarily nursing homes. It generates revenue from long-term leases and mortgage agreements on these facilities.
From 2007-2011, core operating revenue and funds from operation (FFO) increased every year at a compound annual growth rate of 16% and 17%, respectively. It currently pays a dividend that yields a juicy 7.3%. That's more than 4x what you'd get on a 10-year Treasury note. And since 2004, its dividend has grown at a compound annual rate of 11%.
The Bottom Line
Income investors looking for yield should consider looking to the stock market these days. Likewise, growth investors looking for total return should consider dividends along with capital appreciation, as dividends historically have made up a large chunk of overall returns.
These four stocks offer both growth and income and should provide strong total returns over the long haul.
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No positions in stocks mentioned.
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